Hii,
plse tell me accounting treatment for prior period expenses in balancesheet/ P &L a/c as per schedule VI format..
whether it should be disclosed in notes to accounts?
thanks.
$wap$
(Assistant Auditor)
(189 Points)
Replied 19 May 2010
Needs to be disclosed sepeartely in the profit and loss account subject to the item being material
KUSHAL AGRAWAL
(CA Final Student)
(128 Points)
Replied 23 May 2010
as per as-5 , proir period items are those items which in previous years have been not given any effect due to some clerical or manual errors..
such items are to treated as current year items and to be shown effect in current years p&l account notes..
seprate sidclosure is needed in Notes to Pand L only when item is material
yashsr
(CA)
(2285 Points)
Replied 29 March 2012
If audit fees charged for a particular year has not been shown in the P/L, isn't that a material item irrespective of the amount?
CAclubindia
